User Account

All Pages

Determine the average rate of return on the equipment

Assignment Help Accounting Basics
Reference no: EM132845986

Question - Average Rate of Return-Cost Savings - Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $104,000 with a $9,000 residual value and a five-year life. The equipment will replace one employee who has an average wage of $40,370 per year. In addition, the equipment will have operating and energy costs of $10,070 per year.

Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent.

Reference no: EM132845986

Questions Cloud

What is the net after-tax cash inflow in year : Management requires a minimum after-tax rate of return of 12% on all investments. What is the net after-tax cash inflow in Year 1 from the investment
What was clinton income tax expense : No valuation account was deemed necessary for the deferred tax asset as of December 31, 2015. What was Clinton's income tax expense in 2016
Complete the current tax worksheets of abc ltd : Accumulated depreciation on plant for tax purposes is $300 000 on 30 June 2020 and $150 000 on 30 June 2019. Complete the current tax worksheets of ABC Ltd
What is the effective annual rate of interest on this loan : When Charles complained about the high interest rate given their long friendship, What is the effective annual rate of interest on this loan
Determine the average rate of return on the equipment : Average Rate of Return-Cost Savings - Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment
What journal entry would the company make on the day : On December 31, 2018, ABC company sold its equipment for cash for $10,000. What journal entry would the company make on the day
How much will you have in the account after four years : If you do not make any more investments and do not withdraw any money from the account, how much will you have in the account after 4 years
Discuss the effects of cost sharing : Discuss the Effects of Cost Sharing and the effects upon medical services and healthcare quality. Why is customer service so important?
Hedge receivables and payables with future contracts : Explain how the U.S. corporation could hedge the receivables and payables with future contracts. Would this be necessary for your company?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd